DAY AFTER OPTIONS EXPIRED

Continuing trade on Silver (symbol SLV)
03/04/2009 Bought 2000 SLV @ 12.85 (25,700.00)
Sold 10 SLVCM March $13 call @ $0.50 (This reduced my cost basis by only $0.25 since I had 2000 shares and I sold only 10 contracts)
Cost basis = ($12.60) = ($12.85-$0.25)

Bought to close 10 SLVCM March $13 call @ $0.41
Sold to open 10 SLVDM April $13 call @ $0.91(This reduced my cost basis another $0.25 since I rolled my 10 contracts and this covers one-half of my total shares)
Cost basis = ($12.35) = ($12.60 - $0.25)

I am going to wait a little bit to see if there will be a small bounce in the price before selling another call.


GLD: Opened 02/26/09 Buy to Open 3 OQAAV Net Debit ($19.62) GLD Jan 100 Call 2011
Sell to Open 3 GLDCV Net Credit $1.02 GLD Mar 100 Call
Cost basis ($18.60)
March contract expired worthless allowing me to pocket the whole premium.
Sell to open 3 contracts April $95 call Net Debit ($1.50) GLD
Cost basis ($17.10) = ($18.60)-$1.50
April call expired worthless too so I am going to wait a little bit on this one to see if the price will rise so I can sell a May call.


What a difference a day makes. I watched as my USO contract expired last Friday, but today USO is down 7%. That doesn't help selling a May $31 call to reduce my cost basis of my Jan. 2011 $31 LEAP. So I am going to go lower with my strike price but still sell out of the money.

03/20/09
Buy to Open 16 contracts Jan. 2011 $31 call contracts OLLAE ($8.20)
Sell to Open 16 April $31 call contracts UBODE $1.70
So my cost basis is ($8.20)-$1.70 = ($6.50)
April $31 call expired worthless.

Sell to Open 16 contracts +UBOEB May $28 Call @ $1.30
Cost basis: ($6.50) - $1.30 = ($5.20)


Still sitting on my FXB $140 put as FXB may be headed back down. Will wait to sell May put.